The primary demand for oilseeds in South Africa: An error correction linear approximated and almost ideal demand system (ECM-LA/AIDS)

The primary demand for oilseeds in South Africa: An error correction linear approximated and almost ideal demand system (ECM-LA/AIDS)

The paper presents the results of a study that estimated the demand relations for primary oilseeds in South Africa.  The Error Correction version of Linear Approximated Almost Ideal Demand System (LA/AIDS)(ECM-LA/AIDS) were estimated.  Time series data for the period 1971-2002 were analysed.  Prior...

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Main Authors: HP Van Schalkwyk, HD Van Schalkwyk, ZG Alemu, PR Taljaard, A Obi
Format: Article
Language:English
Published: AOSIS 2015-01-01
Series:South African Journal of Economic and Management Sciences
Online Access:https://sajems.org/index.php/sajems/article/view/1288
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spelling doaj-bc82c342eb8440fca91420addc18ba372020-11-24T22:36:36ZengAOSISSouth African Journal of Economic and Management Sciences1015-88122222-34362015-01-018111712610.4102/sajems.v8i1.1288391The primary demand for oilseeds in South Africa: An error correction linear approximated and almost ideal demand system (ECM-LA/AIDS)HP Van SchalkwykHD Van SchalkwykZG AlemuPR TaljaardA ObiThe paper presents the results of a study that estimated the demand relations for primary oilseeds in South Africa.  The Error Correction version of Linear Approximated Almost Ideal Demand System (LA/AIDS)(ECM-LA/AIDS) were estimated.  Time series data for the period 1971-2002 were analysed.  Prior tests stablished weak searability between four oilseeds (sunflower seed, soybeans, groundnuts and cotton seed), indicating that these oilseeds should be modelled together.  The results suggest that the demand for oilseeds is negatively influenced by own price, which is consistent with economic theory, while positive long-term expenditure elasticities suggest that some oilseeds, notably sunflower seed and cotton seed, are luxury commodities in South Africa.https://sajems.org/index.php/sajems/article/view/1288
collection DOAJ
language English
format Article
sources DOAJ
author HP Van Schalkwyk
HD Van Schalkwyk
ZG Alemu
PR Taljaard
A Obi
spellingShingle HP Van Schalkwyk
HD Van Schalkwyk
ZG Alemu
PR Taljaard
A Obi
The primary demand for oilseeds in South Africa: An error correction linear approximated and almost ideal demand system (ECM-LA/AIDS)
South African Journal of Economic and Management Sciences
author_facet HP Van Schalkwyk
HD Van Schalkwyk
ZG Alemu
PR Taljaard
A Obi
author_sort HP Van Schalkwyk
title The primary demand for oilseeds in South Africa: An error correction linear approximated and almost ideal demand system (ECM-LA/AIDS)
title_short The primary demand for oilseeds in South Africa: An error correction linear approximated and almost ideal demand system (ECM-LA/AIDS)
title_full The primary demand for oilseeds in South Africa: An error correction linear approximated and almost ideal demand system (ECM-LA/AIDS)
title_fullStr The primary demand for oilseeds in South Africa: An error correction linear approximated and almost ideal demand system (ECM-LA/AIDS)
title_full_unstemmed The primary demand for oilseeds in South Africa: An error correction linear approximated and almost ideal demand system (ECM-LA/AIDS)
title_sort primary demand for oilseeds in south africa: an error correction linear approximated and almost ideal demand system (ecm-la/aids)
publisher AOSIS
series South African Journal of Economic and Management Sciences
issn 1015-8812
2222-3436
publishDate 2015-01-01
description The paper presents the results of a study that estimated the demand relations for primary oilseeds in South Africa.  The Error Correction version of Linear Approximated Almost Ideal Demand System (LA/AIDS)(ECM-LA/AIDS) were estimated.  Time series data for the period 1971-2002 were analysed.  Prior tests stablished weak searability between four oilseeds (sunflower seed, soybeans, groundnuts and cotton seed), indicating that these oilseeds should be modelled together.  The results suggest that the demand for oilseeds is negatively influenced by own price, which is consistent with economic theory, while positive long-term expenditure elasticities suggest that some oilseeds, notably sunflower seed and cotton seed, are luxury commodities in South Africa.
url https://sajems.org/index.php/sajems/article/view/1288
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